MELI

MercadoLibre's Growth: MercadoLibre has sustained 27 consecutive quarters of revenue growth, with a 39% increase in Q3 2025, driven by a growing e-commerce market in Latin America, where online shopping penetration remains low compared to developed markets.

Fintech Expansion: The company's fintech arm, Mercado Pago, is also experiencing significant growth, with 72 million monthly active users, as many in Latin America lack access to traditional banking services, presenting a substantial opportunity for expansion.

Navigating Volatility: MercadoLibre has a history of operating successfully in volatile economic conditions, particularly in Argentina, where it has adapted to high inflation and economic adjustments, maintaining a strong user base and market presence.

Cultural Trust and Innovation: The company's culture emphasizes trust and support among team members, fostering an environment where mistakes are seen as learning opportunities, which is crucial for innovation and maintaining a competitive edge in the rapidly evolving market.

Emerging Market Growth: Emerging and developing economies are projected to grow by 4.2% in 2025, significantly outpacing the 1.6% growth expected for advanced economies, with EMs now accounting for over 50% of global GDP.

Equity Market Performance: Emerging-market equities are expected to outperform developed-market equities for the first time since 2020, aided by favorable economic conditions and a significant valuation discount of approximately 35% compared to developed markets.

Key Emerging Market Stocks: Notable stocks such as ICICI Bank, Taiwan Semiconductor, and MercadoLibre are highlighted as strong performers, benefiting from structural tailwinds and expected to show robust growth into 2026.

Monetary Policy and Manufacturing Growth: Easing monetary policies in emerging markets are fostering credit growth and supporting manufacturing activity, with countries like India attracting significant foreign investment and experiencing a surge in mobile phone exports.